Loans Receivable, Net (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
Receivables [Abstract] |
|
Schedule of Accounts, Notes, Loans and Financing Receivable |
Loans receivable, net, at December 31, 2020 and 2019 are summarized below. | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | 2020 | | 2019 | | Balance | | % of Total Gross Loans | | Balance | | % of Total Gross Loans | Residential Real Estate Loans | $ | 78,907,159 | | | 15.8 | % | | $ | 86,404,304 | | | 18.4 | % | Consumer Loans | 55,335,425 | | | 11.1 | % | | 56,331,013 | | | 12.0 | % | Commercial Business Loans | 19,704,862 | | | 3.9 | % | | 22,234,189 | | | 4.8 | % | Commercial Real Estate Loans | 299,299,647 | | | 59.8 | % | | 303,550,905 | | | 64.8 | % | Paycheck Protection Program Loans | 47,105,618 | | | 9.4 | % | | — | | | — | % | Total Loans Held For Investment | 500,352,711 | | | 100.0 | % | | 468,520,411 | | | 100.0 | % | Loans Held For Sale | 5,693,400 | | | | | 3,990,606 | | | | Total Loans Receivable, Gross | 506,046,111 | | | | | 472,511,017 | | | | Less: | | | | | | | | Allowance For Loan Losses | 12,842,896 | | | | | 9,225,574 | | | | Loans in Process | 12,197,417 | | | | | 9,957,140 | | | | Deferred Loan Fees | 1,838,426 | | | | | 469,568 | | | | | 26,878,739 | | | | | 19,652,282 | | | | Total Loans Receivable, Net | $ | 479,167,372 | | | | | $ | 452,858,735 | | | |
|
Financing Receivable Credit Quality Indicators |
The following tables summarize the loan grades used by the Bank to measure the credit quality of gross loans receivable, excluding those held for sale, by loan segment at December 31, 2020 and 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | Pass | | Caution | | Special Mention | | Substandard | | Total Loans | Residential Real Estate | $ | 65,437,564 | | | $ | 9,675,300 | | | $ | 799,446 | | | $ | 2,994,849 | | | $ | 78,907,159 | | Consumer | 42,926,887 | | | 10,525,814 | | | 891,107 | | | 991,617 | | | 55,335,425 | | Commercial Business | 15,315,677 | | | 3,851,517 | | | 309,100 | | | 228,568 | | | 19,704,862 | | Commercial Real Estate | 221,696,863 | | | 56,642,660 | | | 16,349,302 | | | 4,610,822 | | | 299,299,647 | | PPP | 47,105,618 | | | — | | | — | | | — | | | 47,105,618 | | Total | $ | 392,482,609 | | | $ | 80,695,291 | | | $ | 18,348,955 | | | $ | 8,825,856 | | | $ | 500,352,711 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | Pass | | Caution | | Special Mention | | Substandard | | Total Loans | Residential Real Estate | $ | 76,674,539 | | | $ | 4,612,182 | | | $ | 1,155,802 | | | $ | 3,961,781 | | | $ | 86,404,304 | | Consumer | 44,294,400 | | | 9,617,301 | | | 624,248 | | | 1,795,064 | | | 56,331,013 | | Commercial Business | 16,140,592 | | | 5,486,393 | | | 301,462 | | | 305,742 | | | 22,234,189 | | Commercial Real Estate | 230,810,756 | | | 56,025,352 | | | 14,285,015 | | | 2,429,782 | | | 303,550,905 | | Total | $ | 367,920,287 | | | $ | 75,741,228 | | | $ | 16,366,527 | | | $ | 8,492,369 | | | $ | 468,520,411 | |
|
Past Due Financing Receivables |
The following tables present an age analysis of past due balances by category at December 31, 2020 and 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Total Past Due | | Current | | Total Loans Receivable | Residential Real Estate | $ | — | | | $ | 152,634 | | | $ | 160,152 | | | $ | 312,786 | | | $ | 78,594,373 | | | $ | 78,907,159 | | Consumer | 292,498 | | | 30,610 | | | 91,870 | | | 414,978 | | | 54,920,447 | | | 55,335,425 | | Commercial Business | 49,554 | | | — | | | 7,152 | | | 56,706 | | | 19,648,156 | | | 19,704,862 | | Commercial Real Estate | 735,456 | | | 346,850 | | | 550,409 | | | 1,632,715 | | | 297,666,932 | | | 299,299,647 | | PPP | — | | | — | | | — | | | — | | | 47,105,618 | | | 47,105,618 | | Total | $ | 1,077,508 | | | $ | 530,094 | | | $ | 809,583 | | | $ | 2,417,185 | | | $ | 497,935,526 | | | $ | 500,352,711 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Total Past Due | | Current | | Total Loans Receivable | Residential Real Estate | $ | — | | | $ | 355,290 | | | $ | 144,209 | | | $ | 499,499 | | | $ | 85,904,805 | | | $ | 86,404,304 | | Consumer | 422,443 | | | 217,542 | | | 81,736 | | | 721,721 | | | 55,609,292 | | | 56,331,013 | | Commercial Business | 147,959 | | | 76,515 | | | 20,316 | | | 244,790 | | | 21,989,399 | | | 22,234,189 | | Commercial Real Estate | 3,849,424 | | | — | | | 1,352,716 | | | 5,202,140 | | | 298,348,765 | | | 303,550,905 | | Total | $ | 4,419,826 | | | $ | 649,347 | | | $ | 1,598,977 | | | $ | 6,668,150 | | | $ | 461,852,261 | | | $ | 468,520,411 | |
|
Schedule of Financing Receivables, Non Accrual Status |
The following table shows non-accrual loans by category at December 31, 2020 compared to 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | Increase (Decrease) | | Amount | | Percent (1) | Amount | | Percent (1) | $ | | % | Non-accrual Loans: | | | | | | | | | | | | Residential Real Estate | $ | 1,682,240 | | | 0.4 | % | | $ | 1,520,485 | | | 0.3 | % | | $ | 161,755 | | | 10.6 | % | Consumer | 402,878 | | | 0.1 | | | 319,280 | | | 0.1 | | | 83,598 | | | 26.2 | | Commercial Business | 100,408 | | | — | | | 122,605 | | | — | | | (22,197) | | | (18.1) | | Commercial Real Estate | 939,946 | | | 0.2 | | | 1,474,036 | | | 0.3 | | | (534,090) | | | (36.2) | | Total Non-accrual Loans | $ | 3,125,472 | | | 0.7 | % | | $ | 3,436,406 | | | 0.7 | % | | $ | (310,934) | | | (9.0) | % |
(1) PERCENT OF GROSS LOANS RECEIVABLE HELD FOR INVESTMENT, NET OF DEFERRED FEES AND LOANS IN PROCESS.
|
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent |
The following tables show the allowance for loan losses by loan category for the years ended December 31, 2020, 2019 and 2018. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2020 | | | Residential Real Estate | | Consumer | | Commercial Business | | Commercial Real Estate | | Total | Beginning Balance | | $ | 1,390,594 | | | $ | 1,210,849 | | | $ | 544,764 | | | $ | 6,079,367 | | | $ | 9,225,574 | | Provision | | 136,063 | | | 251,948 | | | 655,317 | | | 2,556,672 | | | 3,600,000 | | Charge-Offs | | (9) | | | (226,760) | | | (35,048) | | | (19,453) | | | (281,270) | | Recoveries | | 2,300 | | | 62,618 | | | — | | | 233,674 | | | 298,592 | | Ending Balance | | $ | 1,528,948 | | | $ | 1,298,655 | | | $ | 1,165,033 | | | $ | 8,850,260 | | | $ | 12,842,896 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2019 | | | Residential Real Estate | | Consumer | | Commercial Business | | Commercial Real Estate | | Total | Beginning Balance | | $ | 1,191,443 | | | $ | 1,203,593 | | | $ | 923,600 | | | $ | 5,853,081 | | | $ | 9,171,717 | | Provision | | 227,624 | | | 324,394 | | | (392,817) | | | 215,799 | | | 375,000 | | Charge-Offs | | (34,599) | | | (432,003) | | | (1,132) | | | (517,583) | | | (985,317) | | Recoveries | | 6,126 | | | 114,865 | | | 15,113 | | | 528,070 | | | 664,174 | | Ending Balance | | $ | 1,390,594 | | | $ | 1,210,849 | | | $ | 544,764 | | | $ | 6,079,367 | | | $ | 9,225,574 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2018 | | | Residential Real Estate | | Consumer | | Commercial Business | | Commercial Real Estate | | Total | Beginning Balance | | $ | 1,233,843 | | | $ | 1,144,815 | | | $ | 1,011,227 | | | $ | 4,831,733 | | | $ | 8,221,618 | | Provision | | 2,411 | | | 173,235 | | | (55,109) | | | 804,463 | | | 925,000 | | Charge-Offs | | (46,419) | | | (224,954) | | | (32,518) | | | (351,894) | | | (655,785) | | Recoveries | | 1,608 | | | 110,497 | | | — | | | 568,779 | | | 680,884 | | Ending Balance | | $ | 1,191,443 | | | $ | 1,203,593 | | | $ | 923,600 | | | $ | 5,853,081 | | | $ | 9,171,717 | |
|
Allowance for Credit Losses on Financing Receivables |
The following tables summarize the impaired loans evaluated individually and collectively for impairment within the allowance for loan losses and loans receivable balances at December 31, 2020 and 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance For Loan Losses | | Loans Receivable | December 31, 2020 | Individually Evaluated For Impairment | | Collectively Evaluated For Impairment | | Total | | Individually Evaluated For Impairment | | Collectively Evaluated For Impairment | | Total | Residential Real Estate | $ | — | | | $ | 1,528,948 | | | $ | 1,528,948 | | | $ | 1,284,303 | | | $ | 77,622,856 | | | $ | 78,907,159 | | Consumer | — | | | 1,298,655 | | | 1,298,655 | | | 161,869 | | | 55,173,556 | | | 55,335,425 | | Commercial Business | — | | | 1,165,033 | | | 1,165,033 | | | 53,047 | | | 19,651,815 | | | 19,704,862 | | Commercial Real Estate | — | | | 8,850,260 | | | 8,850,260 | | | 720,111 | | | 298,579,536 | | | 299,299,647 | | PPP | — | | | — | | | — | | | — | | | 47,105,618 | | | 47,105,618 | | Total | $ | — | | | $ | 12,842,896 | | | $ | 12,842,896 | | | $ | 2,219,330 | | | $ | 498,133,381 | | | $ | 500,352,711 | | December 31, 2019 | | | | | | | | | | | | Residential Real Estate | $ | — | | | $ | 1,390,594 | | | $ | 1,390,594 | | | $ | 1,086,433 | | | $ | 85,317,871 | | | $ | 86,404,304 | | Consumer | — | | | 1,210,849 | | | 1,210,849 | | | 184,402 | | | 56,146,611 | | | 56,331,013 | | Commercial Business | — | | | 544,764 | | | 544,764 | | | 64,406 | | | 22,169,783 | | | 22,234,189 | | Commercial Real Estate | — | | | 6,079,367 | | | 6,079,367 | | | 1,894,642 | | | 301,656,263 | | | 303,550,905 | | Total | $ | — | | | $ | 9,225,574 | | | $ | 9,225,574 | | | $ | 3,229,883 | | | $ | 465,290,528 | | | $ | 468,520,411 | |
|
Impaired Financing Receivables |
The following tables present information related to impaired loans by loan category as of and for the years ended December 31, 2020, 2019 and 2018. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | Impaired Loans | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Average Recorded Investment | | Interest Income Recognized | With No Related Allowance Recorded: | | | | | | | | | | Residential Real Estate | $ | 1,284,303 | | | $ | 1,284,303 | | | $ | — | | | $ | 1,877,590 | | | $ | 24,597 | | Consumer | 161,869 | | | 170,169 | | | — | | | 210,722 | | | 1,591 | | Commercial Business | 53,047 | | | 948,046 | | | — | | | 58,597 | | | — | | Commercial Real Estate | 720,111 | | | 865,531 | | | — | | | 1,717,842 | | | 56,737 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | 2,219,330 | | | $ | 3,268,049 | | | $ | — | | | $ | 3,864,751 | | | $ | 82,925 | |
(4) Loans Receivable, Net, Continued | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | Impaired Loans | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Average Recorded Investment | | Interest Income Recognized | With No Related Allowance Recorded: | | | | | | | | | | Residential Real Estate | $ | 1,086,433 | | | $ | 1,086,433 | | | $ | — | | | $ | 1,322,609 | | | $ | — | | Consumer | 184,402 | | | 192,702 | | | — | | | 1,106,795 | | | — | | Commercial Business | 64,406 | | | 959,406 | | | — | | | 71,422 | | | — | | Commercial Real Estate | 1,894,642 | | | 2,066,862 | | | — | | | 3,893,786 | | | 54,372 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | 3,229,883 | | | $ | 4,305,403 | | | $ | — | | | $ | 6,394,612 | | | $ | 54,372 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2018 | Impaired Loans | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Average Recorded Investment | | Interest Income Recognized | With No Related Allowance Recorded: | | | | | | | | | | Residential Real Estate | $ | 1,700,861 | | | $ | 1,700,861 | | | $ | — | | | $ | 1,743,906 | | | $ | 31,853 | | Consumer | 986,380 | | | 994,680 | | | — | | | 502,479 | | | — | | Commercial Business | 77,206 | | | 972,206 | | | — | | | 85,020 | | | — | | Commercial Real Estate | 5,084,458 | | | 6,116,761 | | | — | | | 8,052,817 | | | 212,186 | | With an Allowance Recorded: | | | | | | | | | | | | | | | | | | | | Consumer | 73,662 | | | 73,662 | | | 73,662 | | | 6,139 | | | — | | | | | | | | | | | | Commercial Real Estate | 1,441,558 | | | 1,441,558 | | | 665,000 | | | 636,387 | | | 84,881 | | Total | | | | | | | | | | Residential Real Estate | 1,700,861 | | | 1,700,861 | | | — | | | 1,743,906 | | | 31,853 | | Consumer | 1,060,042 | | | 1,068,342 | | | 73,662 | | | 508,618 | | | — | | Commercial Business | 77,206 | | | 972,206 | | | — | | | 85,020 | | | — | | Commercial Real Estate | 6,526,016 | | | 7,558,319 | | | 665,000 | | | 8,689,204 | | | 297,067 | | Total | $ | 9,364,125 | | | $ | 11,299,728 | | | $ | 738,662 | | | $ | 11,026,748 | | | $ | 328,920 | |
|
Troubled Debt Restructurings on Financing Receivables |
In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. A troubled debt restructuring ("TDR") is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that it would not otherwise consider (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. The Bank grants such concessions to reassess the borrower’s financial status and develop a plan for repayment. At the date of modification, TDRs are initially classified as nonaccrual TDRs. They are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower's financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months).
|